Wealthy foreigners pour back into Singapore market

Transactions of private homes grow in July, supported by heavier foreign buying of luxury units

Singapore. Kanuman/Shutterstock

Singapore developers recorded last month 1,178 transactions of new private homes, excluding executive condominiums, up 43.5 percent from June, OrangeTee & Tie reported, citing a survey from the Urban Redevelopment Authority (URA).

The stellar sales could largely be attributed to buyers returning to the market after the June holidays and more developers fast-tracking launches ahead of the lunar seventh month, a taboo time for big-ticket purchases, the consultancy reported.

Foreign buyers also accounted for a heftier amount of transactions in July. Eighty-two units or 7.1 percent of all non-landed new home sales went to foreigners or non-permanent residents (NPR) last month, according to URA Realis data—higher than the one-year average of 39 units.

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Foreigners are also buying even pricier homes. Of the 311 non-landed new homes sold to foreigners in the first seven months of 2019, 27 percent or 84 were above SGD3 million, greater than the last peak of 30.5 percent in 2007.

Over the same period, 49 units or 15.8 percent of non-landed new homes sold to foreigners were more expensive than SGD5 million.

“The growing global economic uncertainties may see more investors parking their funds here as Singapore’s property market is known to be a safe and stable haven for capital preservation and appreciation,” OrangeTee & Tie commented.